What Happened?
Shares of aerospace and defense company Rocket Lab (NASDAQ:RKLB) jumped 4.1% in the afternoon session after its stock continued to rally following the announcement of a deal to acquire Iridium Communications for approximately $8 billion.
The move extended a nearly 16% gain from the previous session when the cash-and-stock deal was first revealed. The acquisition aims to create a vertically integrated space company, combining Rocket Lab’s launch services and spacecraft manufacturing with Iridium’s global satellite communications network.
This combination positions Rocket Lab to compete more directly with rivals such as SpaceX. Following the news, multiple analysts reiterated positive ratings on the stock. For instance, Roth MKM analyst Suji DeSilva increased his price target on RKLB from $100 to $130, citing the company’s strengthened competitive position.
After the initial pop, the shares cooled down to $100.95, up 3.1% from the previous close.
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What Is The Market Telling Us
Rocket Lab’s shares are extremely volatile and have had 82 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 11.7% on the news that the company announced it would acquire satellite communications company Iridium Communications in a deal valued at approximately $8 billion.
Rocket Lab would buy all outstanding shares of Iridium for $54 per share in a cash and stock transaction. The deal was described as one of the most transformative in the space industry, creating a company that can build satellites, launch them, and operate the network.
By uniting Rocket Lab’s launch and satellite manufacturing with Iridium’s global network and experience, the acquisition is expected to add significant revenue, cash flow, and profitability. The transaction is expected to be completed in mid-2027, subject to customary closing conditions, including approvals from Iridium’s stockholders and regulators.
Rocket Lab is up 32.9% since the beginning of the year, but at $100.95 per share, it is still trading 32.8% below its 52-week high of $150.23 from May 2026. Investors who bought $1,000 worth of Rocket Lab’s shares 5 years ago would now be looking at an investment worth $9,271.
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